Thursday, 3 September 2009

Balaji Telefilms (Rs 66.3): Buy

We recommend a buy in Balaji Telefilms from a short-term perspective. It is evident from the charts that in mid-July it took support around Rs 40 and resumed its intermediate-term uptrend, which has been in place since March low of Rs 24.8. Moreover, it has been on a medium-term uptrend from July low. The stock breached its 21- and 50-day moving averages in mid-August and is trading well above them. On September 2, the stock penetrated its near-term resistance at Rs 64 by gaining 9 per cent, accompanied with high volume. The daily relative strength index has re-entered the bullish zone and weekly RSI is on the verge of entering this zone. Besides, the weekly moving average convergence and divergence indicator is likely to enter the positive territory. Our short-term outlook is bullish on the stock. We expect its up-move to continue until it knocks our price target of Rs 73. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 63.

Source: thehindubusinessline

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.